Disliked{quote} What kind of range bars size are you using ? Generally the smaller the size, the higher are the pc ressources needed.Ignored
Do I need to settle it up in higher range then?
I just used ACER atom netbook with my trading. >.<
- #162
- Nov 8, 2013 9:06pm Nov 8, 2013 9:06pm
- Joined May 2007 | Status: MT4/MT5 EAs/Indicators/Alerts coder | 6,542 Posts
MT4/MT5 EAs/Indicators/Alerts coder
- #164
- Nov 8, 2013 10:31pm Nov 8, 2013 10:31pm
- | Commercial User | Joined Dec 2010 | 1,135 Posts
No longer trading forex. Looking for full time job.
- #165
- Nov 9, 2013 1:02am Nov 9, 2013 1:02am
- Joined May 2007 | Status: MT4/MT5 EAs/Indicators/Alerts coder | 6,542 Posts
MT4/MT5 EAs/Indicators/Alerts coder
Nice thread Nexas! I trade with range bars as well using 100 EMA and CCI as part of my strategy so I can relate a lot... in my opinion this is the very best:....because it records volumes as well which is something that most of the indicators fail to do. You know every bar has 6 ingredients: Time, Open, High, Low, Close and Volume....
You don't need time or volume in range bars. Read # post 6, http://www.forexfactory.com/showthre...60#post7041760
The open and close are the same in forex since they are not separated by a period of time, except on weekends, when you usually need to be out of your position.
This is not true, of course, with stocks, commodities, bonds, options, etc. where open/close are more important.
In forex the open is just the close of the last bar. This is the same with range bars.
Hope your trading is a great success!
The mind thinks, the heart knows...
BTW range bars are very similar to point and figure charts, which Paul Rotter preferred because they make it easier to spot patterns. He, also, liked to use the CCI! 
Rotter was the infamous "flipper" of EUREX bond trading, and probably the most successful trader of all time trading his own account. At the time of this interview he was trading 200K-300K round turns/day.
http://www.trading-naked.com/paul_rotter.htm
"q: what timeframes are you using on your charts?
Rotter: usually 5- - 30-min charts for trendlines and indicators. I prefer p&f charts because they give me a clearer view on patterns (triple tops). for indicators I like the CCI because it also shows the volatility of the markets."
Here is a more recent interview:
http://www.traderdaily.com/08/insigh...h-paul-rotter/
Rotter was the infamous "flipper" of EUREX bond trading, and probably the most successful trader of all time trading his own account. At the time of this interview he was trading 200K-300K round turns/day.
http://www.trading-naked.com/paul_rotter.htm
"q: what timeframes are you using on your charts?
Rotter: usually 5- - 30-min charts for trendlines and indicators. I prefer p&f charts because they give me a clearer view on patterns (triple tops). for indicators I like the CCI because it also shows the volatility of the markets."
Here is a more recent interview:
http://www.traderdaily.com/08/insigh...h-paul-rotter/
The mind thinks, the heart knows...
Range bars work well with this system, which I really like, because it's a trend following trading system.
But they will not work as well, or at all, with counter-trend trading, Extreme TMA being a good example.
Although I have not tried the following systems myself, so this is NOT a recommendation, they are a good example of the main profitable trading systems.
See the Z systems here: http://manual.zorro-trader.com/zsystems.htm
As you can see, Trend Following, Counter-trend and Breakout systems are poorly correlated with each other. So, the same indicators will not work as well on all of these different trading systems.
(Note this remark about Z3: "The Z3 system... is especially profitable with metals and currencies....Z3 achieves the highest profit per trade of all included systems." I also notice it has the greatest drawdowns of the systems, and it's not shown on its chart. Hmmmm....;^)
Z1 & Z2 can be used free of charge as long as the trader doesn't make more than $30K/yr.
But they will not work as well, or at all, with counter-trend trading, Extreme TMA being a good example.
Although I have not tried the following systems myself, so this is NOT a recommendation, they are a good example of the main profitable trading systems.
See the Z systems here: http://manual.zorro-trader.com/zsystems.htm
As you can see, Trend Following, Counter-trend and Breakout systems are poorly correlated with each other. So, the same indicators will not work as well on all of these different trading systems.
(Note this remark about Z3: "The Z3 system... is especially profitable with metals and currencies....Z3 achieves the highest profit per trade of all included systems." I also notice it has the greatest drawdowns of the systems, and it's not shown on its chart. Hmmmm....;^)
Z1 & Z2 can be used free of charge as long as the trader doesn't make more than $30K/yr.
The mind thinks, the heart knows...
Nice thread Nexas!...You know every bar has 6 ingredients: Time, Open, High, Low, Close and Volume....
It's pretty common as I'm sure you know in the forums to have someone say, "My chart is not the same as yours!" and someone else chalk it up to a difference is brokers, time zones, or who knows what! ;^)
On some platforms you can arbitrarily create your own TF from tick data.
Obviously, price movement, and not the open/close of any particular bar, is what's really important, & that's the point I was making.
If watching time and volume when using range bars, as well as all the other things you're watching, works for you, great!
I prefer a simpler approach, myself, but, who knows, perhaps I just have a simpler mind!
Good luck with your trading!
The mind thinks, the heart knows...
- #177
- Edited 12:10pm Nov 13, 2013 11:44am | Edited 12:10pm
- Joined Feb 2012 | Status: Grand Ultimate | 825 Posts
{quote} ... I would disagree a little about counter-trend but hey, everyone is different!
If you mean the lack of correlation between the counter-trend and trend following systems, the observation was made on the site, actually.
Though it may be accurate, I don't think it's really precise, if you know what I mean. Perhaps, that's what you're sensing.
It's sort of like an average. You know, if someone has his head in the refrigerator & his feet in the oven, he's at a comfortable temperature, on average.
In this case, they are saying that if draw downs are negatively correlated and gains are positively correlated, then the total must be uncorrelated.
True, but not necessarily explanatory.
The mind thinks, the heart knows...
- #178
- Edited 12:08pm Nov 13, 2013 11:50am | Edited 12:08pm
- Joined Feb 2012 | Status: Grand Ultimate | 825 Posts
Its a bit off topic, but if you look at the equity curve of the combination of Z1 &Z2, which is Z12, the curve is smoother and much more profitable than either system individually.
The negatively correlated draw downs that occur when the trend doesn't reverse, stopping out the counter-trend system and rewarding the trend-following system, create a hedging effect.
Though it is not a perfect hedge, it tends to lessen the draw downs, smoothing the curve.
The greater profit occurs when reversals are followed by a trend. This stops out the trend-following system and rewards the counter-trend system which stays in the trade until it's stopped out.
If the trend continues long enough, the trend-following system enters the trend while the counter-trend system is still active in it, producing profits for both for some period of time.
This boosts the profits over all and creates a steeper equity curve.
I like the system on this thread for it's simplicity. Setting up an automatic trading system is not simple, or without its drawbacks.
The negatively correlated draw downs that occur when the trend doesn't reverse, stopping out the counter-trend system and rewarding the trend-following system, create a hedging effect.
Though it is not a perfect hedge, it tends to lessen the draw downs, smoothing the curve.
The greater profit occurs when reversals are followed by a trend. This stops out the trend-following system and rewards the counter-trend system which stays in the trade until it's stopped out.
If the trend continues long enough, the trend-following system enters the trend while the counter-trend system is still active in it, producing profits for both for some period of time.
This boosts the profits over all and creates a steeper equity curve.
I like the system on this thread for it's simplicity. Setting up an automatic trading system is not simple, or without its drawbacks.
The mind thinks, the heart knows...
{quote} Not that experienced. Is wonderful when you are capable of finding the simpler approach, I think ultimately that's the goal.
It is human nature to make trading complex if significant risk & reward are involved.
Unless you have the kind of mind that handles complexity well (and some do....I don't ;^), it can more confusing than helpful.
Everyone probably knows Einstein's popular quote, "Make everything as simple as possible, but no simpler.", but he also said, "Three Rules of Work: Out of clutter find simplicity; From discord find harmony; In the middle of difficulty lies opportunity." which seems to work for trading, also.
The mind thinks, the heart knows...
Does anyone have experience using NinjaTrader at FXCM?
Does anyone know of another platform with range bars?
I don't really like MT4's range bar complexity.
(I didn't care for their disclaimer that states they may be taking the other side of your trade.
Can't win trading against your broker long term.)
Does anyone know of another platform with range bars?
I don't really like MT4's range bar complexity.
(I didn't care for their disclaimer that states they may be taking the other side of your trade.
Can't win trading against your broker long term.)
The mind thinks, the heart knows...